Eli Lilly reported first-quarter adjusted profit that exceeded Wall Street’s expectations and raised its full-year guidance due to strong sales of its diabetes drug Mounjaro and weight loss treatment Zepbound. The company now expects full-year adjusted earnings of $13.50 to $14.00 per share, up from previous guidance. Revenue for the year is projected to be between $42.4 billion and $43.6 billion. The results and guidance reflect Zepbound’s first full quarter on the market, with sales of $517.4 million. Analysts predict Zepbound could generate over a billion dollars in sales in its first year and become a top-selling drug.
In the first quarter, Eli Lilly reported adjusted earnings per share of $2.58, higher than the $2.46 expected by analysts. Revenue for the quarter was $8.77 billion, topping the $8.92 billion expected. The pharmaceutical company posted a net income of $2.24 billion for the quarter. Eli Lilly anticipates revenue growth to accelerate in the second half of the year with increased availability of incretin drug doses such as Mounjaro and Zepbound. Shares of Eli Lilly increased almost 8% in premarket trading following the earnings report, and the company’s market cap is around $700 billion.
While Mounjaro saw a significant revenue increase in the first quarter, the drug missed Wall Street’s expectations. Sales of Mounjaro reached $1.81 billion, attributed to higher prices and decreased use of savings card programs. The $25 monthly coupon for uninsured patients expired in June, impacting realized price comparisons. Sales of Trulicity, another diabetes drug from Eli Lilly, declined by 26% to $1.46 billion in the first quarter, lower than analyst expectations. In the U.S., declining sales of Trulicity were due to supply constraints and competition with other diabetes treatments.
Despite facing challenges like sporadic supply shortages and high costs for its drugs, Eli Lilly has seen significant market success with its weight loss and diabetes treatments. Shares of the company have risen by 26% this year and almost 60% in 2023. Strong demand for Mounjaro and Zepbound has been driving revenue growth for Eli Lilly. The company expects revenue growth to continue in the second half of the year as availability of incretin drug doses improves. Eli Lilly is currently the largest pharmaceutical company based in the U.S. with a market cap of approximately $700 billion.
In conclusion, Eli Lilly’s first-quarter earnings report exceeded expectations, leading to a raise in full-year guidance and optimistic projections for the company’s blockbuster drugs. Despite some challenges with supply constraints and competition in the diabetes drug market, Eli Lilly remains a leader in the pharmaceutical industry. The success of drugs like Mounjaro and Zepbound has contributed to the company’s strong financial performance and growth outlook. Investors and analysts are closely monitoring Eli Lilly’s performance as it continues to innovate and expand its product portfolio.
